Are there any benefits to this regulation I'm overlooking?

> Yep lots, A democratically elected government of a state is at least answerable to its constituents who can boot them out if the government doesn't do the right thing. These monopolistic social 'platforms' are not answerable to anyone but the whims of their management and advertisers.

They purposely allow lies and misinformation to propogate as it boosts engagement and are a cesspool of disharmony and conflict.

Just as well that they'll be now held responsible for the results of their actions.

Love it, high time many of them are broken down for having far too much power.